Last checked at 11 Jan 2021 07:00
11 January 2021
Block Energy plc
("Block" or the "Company")
West Rustavi Update
Block Energy plc, the development and production company focused on Georgia, is pleased to provide an update regarding gas sales at its West Rustavi field. The Company has completed all of the steps under its control, such as the construction and commissioning of the Early Production Facility and gas gathering line. Bago LLC has completed the construction and final pressure testing of its 8km gas sales pipeline. The remaining key steps leading up to inaugural gas sales are all under the control of Bago LLC and include finalising the construction of the compressor station, which is well underway, and hooking it up to the state's main gas line. Delivery of first gas is now forecast to occur by late January or early February.
Block plans to restart oil and gas production at its West Rustavi licence area and will be mobilising teams to the WR-16aZ and WR-38Z wells in the coming days to open those two wells.
Also, Block's Drilling and G&G departments are finalising preparations for the 2021 drilling and workover programme, details of which will be communicated to shareholders in the coming weeks.
Block Energy Chief Executive Officer, Paul Haywood, said:
"I am pleased to provide an update on our gas sales in Georgia, where after safely installing and commissioning the Early Production Facility and constructing a gas gathering pipeline, we are on the cusp of our inaugural gas sales. The commencement of gas sales will be a significant event for Block and is testament to the capability of our team, who have continued to prioritise this project, despite some significant operational and travel challenges associated with COVID-19. As well as the commencement of gas sales, we are pleased to be recommencing production and sales of crude oil at West Rustavi with the Brent oil price now over $50 per barrel."
For further information please visit http://www.blockenergy.co.uk/ or contact:
Paul Haywood (Chief Executive Officer) | Block Energy Plc | Tel: +44 (0)20 3468 9891 |
Neil Baldwin (Nominated Adviser) | SPARK Advisory Partners Limited | Tel: +44 (0)20 3368 3554 |
Peter Krens (Corporate Broker) | Tennyson Securities Limited | Tel: +44 (0)20 7186 9030 |
Owen Roberts / Violet Wilson (Financial PR) | Camarco | Tel: +44 (0)20 3757 4980 |
Notes to editors
Block Energy plc is an AIM-listed independent oil and gas company focused on production and development in Georgia, applying innovative technology to realise the full potential of previously discovered fields.
Block has recently acquired a 100% working interest in Georgian onshore licence blocks IX and XIB. Licence block XIB is Georgia's most productive block, with 2P oil and gas reserves of 64 million boe and historic production of over 180 MMbbls of oil from the Middle Eocene, peaking in the mid-1980s at 67,000 bopd.
The Company has a 100% working interest in the highly prospective West Rustavi onshore oil and gas field with multiple wells that have tested oil and gas from a range of geological horizons. The field has so far produced 50 Mbbls of light sweet crude and has 0.9 MMbbls of gross 2P oil reserves in the Middle Eocene. It also has 38 MMbbls of gross unrisked 2C contingent resources of oil and 608 BCF of gross unrisked 2C contingent resources of gas in the Middle, Upper and Lower Eocene formations (Source: CPR Gustavson Associates: 1 January 2018).
Block also holds 100% and 90% working interests respectively in the onshore oil producing Norio and Satskhenisi fields.
The Company offers a clear entry point for investors to gain exposure to Georgia's growing economy and the strong regional demand for oil and gas.
Glossary
1. bbls: barrels. A barrel is 35 imperial gallons.
2. boe: barrels of oil equivalent.
3. bopd: barrels of oil per day.
4. Mbbls: thousand barrels.
5. MMbbls: million barrels.
6. MMCF/d: million cubic feet per day.
7. BCF: billion cubic feet.
8. G&G: geology and geophysics